Recently, Microsoft has revealed it would be cutting 5,000 jobs over a period of 18 months, since it had failed to meet revenue expectations for the second fiscal quarter, which registered a decrease by 11 percent.

Microsoft Corporation announced Thursday that the decision had been prompted by deteriorating global economic conditions and lower client revenue, to which a weakening PC market and a demand transition to lower-priced notebook models.had given rise.

The tech giant stated that its profit had dropped to $4.17 billion, which translates as 47 cents per share, from the same time-frame last year, when the revenue registered had amounted to $4.71 billion (50 cents per share).

Furthermore, the company said that its total revenue had increased 2 percent to $16.63 billion due to the fact that server, tools and entertainment sales contributed to downplaying an 8 percent drop in client revenue.

Nevertheless, the numbers failed to live up to previous Wall Street forecasts, which had estimated earnings of 49 cents per share on sales of $17.08 billion.

Microsoft Corporation said that the job cuts would reduce operating costs by $1.5 billion, given that the company expected lower revenue and earnings within the second half of the year.

Of the 5,000 positions that are to be slashed, Microsoft revealed that 1,400 would be cut immediately.

The company added that it was not able to offer profit and revenue forecasts for the fiscal year by virtue of unstable market conditions.